2. Asset Products
An asset is what the bank holds in terms of the credit given
to the customer
Interest rate charged are different for different products
Fixed interest followed for some products while a floating
interest charged for others
The interest rate varies with the changes in the inter-bank
rates like Benchmark Prime Lending Rates
If there is an increase in the BPLR then the customer has to
pay a higher EMI and vice-versa
In fixed interest rates, the customer is protected against
fluctuations in the interest rate
2
4. Housing loans
4
These form majority of the asset portfolio for a retail bank
Given in order to extend financial support to the people
who want to construct a house
The amount extended depends on the expenditure
involved and the repaying capacity of the customer
The repayment period is long term in nature
5. Personal Loans
5
Is given to customers to help them meet personal expenses like
marriage, travel etc.
Depends on the customer’s ability to repay and his credibility
Personal loans given to salaries employees and self employed
people
Financial institution grant personal loan to its customer on the
basis of few documents like KYC, Financial Document, Bank stat
etc.
It is an unsecured loan but in recent time few financial
institutions are taking partly collateral like LIC, FD, property,
land etc depending on the customer’s requirement and
customer’s financial strength
6. Property Loans/Mortgage Loans
One of the most common type of loan extended by the
banks
Under this, property assets like land, buildings, vehicles
and gold etc are mortgaged
Interest rates fixed on the prevailing bank rates
6
7. Agriculture Loans
Typical products include crop loans, farm equipment loans
against warehouse receipts
Provide loans for horticulture activities, poultry, dairy,
rearing of goat and sheep, sericulture etc
Depends on mortgaging or hypothecation in most loans
Loan cards have been brought by many banks which can be
ATM’s or credit cards
7
8. Vehicle loans
Provide loans for purchase for two wheelers, four wheelers
and commercial vehicles
Usually financed up to 85-90% of the total invoice amount
Repayment is made through equated monthly installments
(EMI)
8
9. Credit cards/Debit cards
In credit cards, the amount is paid to the merchant
electronically
The money is paid by the card user to the bank through
EMI’s or in a lump sum amount
In Debit cards, the amount is deducted from card holder’s
account and paid to the merchant
No interest is paid by the Debit card holder
Credit cards are very aggressively marketed by bank
merchants
9
10. Investment Products
A fairly new category as compared to asset and liability
products
Includes pension and mutual funds, insurance products etc
Provides additional liquidity to the bank to invest in other
avenues
These products are also used as tools to retain the
customers
These are mainly cross-sold
10
14. Liability Products
Commercial banks offer a variety of "liability products" to
consumers. These products are known as "liability
products“ because they represent liabilities of the bank
Consumers generally know them as "deposit" products.
Typically, liability products include checking andsavings
accounts, money market accounts and certificates of
deposit (CDs)
Bank liability products are useful to consumers since they
provide a safe place to keep their funds and givet hem the
opportunity to earn interest on cash that they may not
immediately need.
14
18. Liability Products
Liability products also give consumers access to cash via
checks and ATMs, and except for most checking accounts,
they allow consumers to earn interest on their deposits
There are three major Liability banking Porduct
Saving Account
Current Account
Term Deposit
6
19. Savings account
Savings account has been designed to help people save
for their future financial requirements. Under this account,
bank gives free ATM cum debit card.
The account can also be accessed through SBI internet
banking facility by downloading instant sbi. The rate of
interest is compounded half yearly under this account.
On the other hand, savings plus account gives the facility
of savings account along with term deposit account. Any
surplus funds in the account exceeding the threshold limit,
for a minimum amount of Rs.10,000 and in multiple
of Rs.1000 in any one instance, are transferred as term
deposit and earns interest as applicable to term deposits.
19
20. Current Account
Non interest-bearing bank account which allows the
accountholder to write checks against the funds in the
account
Individuals, public and private limited companies,
partnership firms, and trusts
Overdraft facility is a short-term credit instrument to
secure the liquidity you need for your operational business
@1.5% p.a
8
21. Term deposit
Earn higher income on surplus funds
Bank offers flexibility in period from 15 days to 10 years
can be opened with a nominal amount of Rs. 1000/
Against your fixed deposit you can take loan/overdraft
during your urgent financialrequirement.
Interest rate- 15 days to 45 days ± 4.00
9
22. List of Liability Products offered by
HDFC Bank
Saving Account
Regular Savings Accountb.
Savings Plus Accountc.
Savings Max Accountd.
Senior Citizens Account.
No Frills Account.
Institutional Savings Accountg.
Salary Account
10
23. List of Liability Products offered by
HDFC Bank
Salary Account
Payroll
Classic
Regular
Premium
Defence
No Frills Salary Account
Reimbursement Current Account
11
24. Contd..
Kid's Advantage Account
Pension Saving Bank Account j.
Family Savings Groupk.
Kisan No Frills Savings.
Kisan Club Savings
Current Account
Plus Current Account
Trade Current Account
Premium Current Account
Regular Current Account
12
25. Contd..
RFC - Domestic Account
Flexi Current Account
Apex Current Account
Max Current Account
Merchant Advantage Current Account
Merchant Advantage Plus Current Account
13